REGISTERED NUMBER: SC102458 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Spark's Mechanical Services Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

R Burnett

D A Kirk

L Forrest

REGISTERED OFFICE:

Broadfold Road

Bridge of Don Industrial Estate

Aberdeen

AB23 8EE

REGISTERED NUMBER:

SC102458 (Scotland)

AUDITORS:

Tawse & Partners

Statutory Auditors

18 North Silver Street

Aberdeen

AB10 1JU

The directors present their strategic report for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company is the provision of mechanical and electrical building services, which include specialist refrigeration services and a significant range of air conditioning services. The company operates from branches throughout the UK.

FAIR REVIEW OF BUSINESS

The directors are very pleased that the results for 2024 were even better than forecast a year ago. The company's . turnover is substantially higher than previous years and it has maintained a fairly consistent gross profit margin. The retained reserves built up over the past few years has also increased considerably. The company has entered the new financial year still with a very good customer base and an extremely healthy net asset position.

The company's key financial and other performance indicators during the year were as follows:

Unit

2024

2023

Turnover

£

15,067,865

11,240,428

Gross profit margin

%

18.5

19.8

Shareholders' Funds

£

3,056,382

2,845,992

PRINCIPAL RISKS AND UNCERTAINTIES

Principal risks and uncertainties of the organisation still come from the market environment of the sectors that we primarily operate in but also, in managing our resources, including recruitment and retention, suppliers and specialist contractors. Sparks has always serviced a diverse customer base. With significantly less capital projects in the oil and gas sector now occurring in Aberdeen, we have been able to turn to our other customer sectors for installation work, service and maintenance. In many cases customers which were originally only involved in oil and gas, are now expanding into renewables or other disciplines and retaining their sites in the Aberdeen area, with work still flowing. With the company's broad on-going spectrum of customers and work, the directors expect to maintain similar levels of turnover in the years to come.

FUTURE DEVELOPMENTS

The directors are confident that the company is in a strong position to move forward. We continue to have a good customer base and orders to be completed. We feel that change has occurred, and that we have suitably adapted to it. Further changes will of course occur however we now have the strength and experience to adapt as required.

ON BEHALF OF THE BOARD:

D A Kirk - Director

1 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

DIVIDENDS

Interim dividends totalling £22,822 were distributed during the year (2023: £63,765).

The directors recommend that no final dividends be paid.

FUTURE DEVELOPMENTS

The future developments of the company are set out in the Strategic Report, in accordance with s.414C(11) CA 2006.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

R Burnett

D A Kirk

L Forrest

FINANCIAL INSTRUMENTS

The company has secured debt factoring in place with an undrawn balance at 31 December 2024 of £195,193 (2023: balance outstanding of £699,652). The company still has an outstanding CBILS loan at 31 December 2024, repayments of £100,000 (2023: £100,000) were made during the year leaving a balance of £216,667 (2023: £316,667). There is no exposure to the company regarding credit, liquidity, cashflow or market risk.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

D A Kirk - Director

1 September 2025

Opinion

We have audited the financial statements of Spark's Mechanical Services Limited (the 'company') for the year ended 31 December 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which an audit is considered capable of detecting irregularities, including fraud

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at

the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud

or non compliance with laws and regulations throughout the audit.

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and

disclosures in the financial statements. The most relevant frameworks identified include:

-

UK GAAP

-

Companies Act 2006

-

Corporation Tax legislation

-

VAT legislation

-

Health and Safety legislation

We gained an understanding of how the company is complying with these laws and regulations by making enquiries

of management. We corroborated these enquiries through our review of submitted returns, relevant correspondence

with regulatory bodies and board minutes.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud

might occur by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. The following procedures were performed to provide reasonable assurance that the financial

statements were free of material fraud or error:

-

Reviewing minutes of meetings of those charged with governance;

-

Reviewing the level of and reasoning behind the company's procurement of legal and professional services;

-

In respect of amounts recoverable on contracts and accrued income, reviewing a sample of contract files to confirm the value of the outstanding claims to evidence of the contractors agreement;

-

Performing audit procedures over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by management in their calculation of accounting estimates for potential management bias.

Our audit procedures were designed to respond to risk of material misstatement in the financial statements,

recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one

resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation.

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws

and regulations is from events and transactions reflected in the financial statements, the less likely we are to become

aware of it.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Hazel Neilson (Senior Statutory Auditor)

for and on behalf of Tawse & Partners

Statutory Auditors

18 North Silver Street

Aberdeen

AB10 1JU

1 September 2025

TURNOVER

5

15,067,865

11,240,428

Cost of sales

12,282,880

9,013,919

GROSS PROFIT

2,784,985

2,226,509

Administrative expenses

2,480,278

2,293,672

OPERATING PROFIT/(LOSS)

7

304,707

(67,163

)

Interest receivable and similar income

8

27,744

20,775

332,451

(46,388

)

Interest payable and similar expenses

9

20,356

25,585

PROFIT/(LOSS) BEFORE TAXATION

312,095

(71,973

)

Tax on profit/(loss)

10

78,883

(3,658

)

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

233,212

(68,315

)

PROFIT/(LOSS) FOR THE YEAR

233,212

(68,315

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

233,212

(68,315

)

FIXED ASSETS

Tangible assets

12

472,916

503,688

CURRENT ASSETS

Stocks

13

108,011

124,178

Debtors

14

2,717,298

4,076,293

Cash at bank and in hand

1,797,486

1,522,524

4,622,795

5,722,995

CREDITORS

Amounts falling due within one year

15

1,830,080

3,060,946

NET CURRENT ASSETS

2,792,715

2,662,049

TOTAL ASSETS LESS CURRENT LIABILITIES

3,265,631

3,165,737

CREDITORS

Amounts falling due after more than one year

16

(116,667

)

(216,667

)

PROVISIONS FOR LIABILITIES

21

(92,582

)

(103,078

)

NET ASSETS

3,056,382

2,845,992

CAPITAL AND RESERVES

Called up share capital

22

25

25

Retained earnings

23

3,056,357

2,845,967

SHAREHOLDERS' FUNDS

3,056,382

2,845,992

The financial statements were approved by the Board of Directors and authorised for issue on 1 September 2025 and were signed on its behalf by:

L Forrest - Director

R Burnett - Director

D A Kirk - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

25

2,978,047

2,978,072

Changes in equity

Dividends

-

(63,765

)

(63,765

)

Total comprehensive income

-

(68,315

)

(68,315

)

Balance at 31 December 2023

25

2,845,967

2,845,992

Changes in equity

Dividends

-

(22,822

)

(22,822

)

Total comprehensive income

-

233,212

233,212

Balance at 31 December 2024

25

3,056,357

3,056,382

Cash flows from operating activities

Cash generated from operations

1

1,239,795

(302,480

)

Interest paid

(20,356

)

(25,585

)

Tax paid

31,555

(111,201

)

Net cash from operating activities

1,250,994

(439,266

)

Cash flows from investing activities

Purchase of tangible fixed assets

(239,372

)

(274,401

)

Sale of tangible fixed assets

60,011

15,767

Interest received

27,744

20,775

Net cash from investing activities

(151,617

)

(237,859

)

Cash flows from financing activities

Loan repayments in year

(100,000

)

(100,000

)

Advanced to group undertakings

(1,941

)

(3,284

)

Amount repaid by directors

-

25,525

Movement in drawdown borrowings

(699,652

)

416,463

Equity dividends paid

(22,822

)

(63,765

)

Net cash from financing activities

(824,415

)

274,939

Increase/(decrease) in cash and cash equivalents

274,962

(402,186

)

Cash and cash equivalents at beginning of year

2

1,522,524

1,924,710

Cash and cash equivalents at end of year

2

1,797,486

1,522,524

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

Profit/(loss) before taxation

312,095

(71,973

)

Depreciation charges

210,467

168,481

Profit on disposal of fixed assets

(334

)

(9,682

)

Finance costs

20,356

25,585

Finance income

(27,744

)

(20,775

)

514,840

91,636

Decrease in stocks

16,167

41,132

Decrease/(increase) in trade and other debtors

1,329,381

(1,054,061

)

(Decrease)/increase in trade and other creditors

(620,593

)

618,813

Cash generated from operations

1,239,795

(302,480

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

1,797,486

1,522,524

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

1,522,524

1,924,710

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

1,522,524

274,962

1,797,486

1,522,524

274,962

1,797,486

Debt

Debts falling due within 1 year

(799,652

)

699,652

(100,000

)

Debts falling due after 1 year

(216,667

)

100,000

(116,667

)

(1,016,319

)

799,652

(216,667

)

Total

506,205

1,074,614

1,580,819

1.	STATUTORY INFORMATION

Spark's Mechanical Services Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£), and are rounded to the nearest £.

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared on a going concern basis under the historical cost convention modified to include certain items at fair value.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

The presentation currency is pounds sterling (£).

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with other members of the group.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services

When the outcome of a transaction can be estimated reliably, turnover from services rendered is recognised by reference to the stage of completion at the Statement of Financial Position date. Stage of completion is measured by reference to contractual rates of labour hours for services rendered and direct expenses incurred. When the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

Construction contracts

In respect of contract work, revenue is recognised by reference to stage of completion of the contract. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.

The company recognises revenue when the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.

When it is probable that the contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately with a corresponding provision.

Interest Receivable

Interest income is recognised using the effective interest method.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life, or over the lease term, whichever is the shorter.

Improvements to property

-

Over term of lease

Plant and machinery

-

20% on cost

Motor vehicles

-

25% on cost

Office equipment

-

25% on cost

Tangible assets are stated in the Balance Sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in the acquisition and installation.

Stocks

Stocks are stated at the lower of cost, using the first in first out method, and selling price less costs to sell. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Financial instruments

The company has elected to apply provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an option to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits

A defined contribution plan is a pension plan under which fixed contributions are paid into the pension fund and the company has no legal obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employee the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expenses when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Leasing commitments

Leases in which subsequently all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the Statement of Income and Retained Earnings on a straight line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at

transaction price. Any losses arising from impairment are recognised in the profit and loss account in other

administrative expenses.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand and bank deposits.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a financing transaction it is measured at fair value.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

4.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:-

Amounts Recoverable on Contracts

As disclosed in the accounting policies, construction contract profits are contingent on the judgements of management around the future outcome and stage of the contract.

5.

TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

Analysis of turnover is given below:

31.12.24

31.12.23

£

£

Rendering of Services

15,067,865

11,240,428

15,067,865

11,240,428

Turnover from construction contracts:

31.12.24

31.12.23

£

£

Gross amount due from customers for

contract work

1,018,472

1,004,516

6.	EMPLOYEES AND DIRECTORS

The aggregate payroll costs (including directors' remuneration) were as follows:

31.12.24

31.12.23

£

£

Wages and salaries

3,598,445

3,291,016

Social security costs

396,535

361,109

Pension costs, defined contribution scheme

211,465

179,345

4,206,445

3,831,470

The average number of persons employed by the company (including directors) during the year, analysed by

category was as follows:

31.12.24

31.12.23

No.

No.

Contracts / Service

64

66

Administration and support

18

21

82

87

31.12.24

31.12.23

£

£

Directors' remuneration

290,660

240,507

Directors' pension contributions to money purchase schemes

107,392

86,425

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

3

3

Information regarding the highest paid director is as follows:

31.12.24

31.12.23

£

£

Emoluments etc

119,614

95,200

Pension contributions to money purchase schemes

33,000

24,000

7.	OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging/(crediting):

31.12.24

31.12.23

£

£

Depreciation - owned assets

210,467

168,481

Profit on disposal of fixed assets

(334

)

(9,682

)

Auditors' remuneration

15,069

14,640

Rental operating leases

106,891

107,721